Nevada Sales Tax Rates

Total Range for 2024

4.6%-8.265%

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Why do you need to collect sales tax in Nevada?

Sales tax collection services two main purposes:

  • Funding government services: Sales tax is a major source of revenue for Nevada, funding critical services like infrastructure, education, and public safety.
  • Creating a fair playing field: Sales tax ensures a level playing field for Nevada businesses. Without it, out-of-state vendors could undercut in-state businesses by not collecting sales tax.

In addition, like most states, Nevada has adopted both physical and economic nexus standards which tie businesses to states for tax purposes.

  1. Physical Nexus: A business has physical nexus if it has a physical presence in Nevada. This could include a store, warehouse, office, or even employees who regularly travel to the state.
  2. Economic Nexus: Even without a physical presence, a business can create economic nexus by exceeding a certain sales threshold within Nevada. In Nevada, this threshold is met if a business has:
    1. $100,000 or more in gross revenue from Nevada sales in the previous or current calendar year, or
    2. 200 or more separate transactions delivered to Nevada customers in the previous or current calendar year.

Understanding physical and economic nexus is essential for any business selling to Nevada customers. If you’re unsure about your obligation to collect sales tax, it’s best to consult with a tax professional.

Is what you’re selling taxable in Nevada?

Now that you understand the basics of Nevada sales tax, let’s determine if your specific products or services are subject to it.

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How to register for sales tax in Nevada

There are two ways to register for a sales tax permit in Nevada:

  • Online: The Nevada Department of Taxation recommends online registration through their SilverFlume system. It’s generally faster and more convenient. The online registration process will guide you through entering your business information, including:
    • Business name and address
    • Contact information
    • Federal Employer Identification Number (EIN)
    • Business activity start date
    • Projected monthly sales and taxable sales
    • Products or services offered
  • Paper application: If online registration isn’t an option, you can also apply for a Sales Tax Permit by mail using a paper application.
    • Download the Nevada Business Registration form from the Nevada Department of Taxation website.
    • Complete the form following the instructions provided.
    • Mail the completed application form along with any required documentation to the address listed on the form.

Once you’ve registered, you’ll receive a Registered Retail Merchant’s Certificate (RRMC), which is your sales tax permit.

How to collect sales tax in Nevada

Here’s how to collect sales tax in Nevada:

  1. Calculate the Tax: Determine the appropriate sales tax rate. The base rate in Nevada is 4.6%, but some localities add additional county or local option income taxes. However, some counties or localities may add additional sales tax on top of the base rate. You can find the specific sales tax rate for your area on the Nevada Department of Taxation website.
  2. Collect the Correct Amount: Once you know the applicable tax rate, simply apply it to the taxable sales price of your goods or services to determine the amount of sales tax to collect from the customer.
  3.  Reporting and Remitting Sales Tax: Nevada requires businesses to file sales tax returns and remit the collected tax on a regular basis. The specific filing frequency depends on your business’s total sales tax liability.  Generally, businesses with lower sales tax liability will file quarterly, while those with higher liability may need to file monthly. You can find detailed information on sales tax filing and remittance requirements, including forms and deadlines, on the Nevada Department of Taxation website.
  4. Additional Tips:
    1. Consider using sales tax software: Sales tax software can automate calculations, filing, and remittance, saving you time and ensuring accuracy.
    2. Maintain good records: Keep detailed records of your sales and sales tax collected for audit purposes.
    3. Stay informed: Sales tax laws and regulations can change, so stay updated on any changes that might affect your business.

Remember: These are just general guidelines. It’s always best to consult with a sales tax professional like Yonda Tax or the Nevada Department of Taxation for specific advice on collecting and remitting sales tax in Nevada.

FAQs

How often do you need to file sales tax returns in Nevada?

How often you need to file sales tax returns depends on your business’s total sales tax liability. 

In general, companies that have a lower amount of sales tax to pay will typically file their taxes every quarter, whereas those with a higher amount may find it necessary to file on a monthly basis.

Do you need a seller/reseller permit?

Yes, a seller’s permit (also called a Sales Tax Permit) is required to collect sales tax in Nevada.

When are Nevada’s Returns Due?

Sales tax returns in Nevada are due on the last day of the month following the reporting period.

Is anyone exempt from sales tax in Nevada?

In Nevada, there are certain categories of purchases and customers that are exempt from paying sales tax. Here’s a breakdown:

Exempt Purchases:

  • Groceries (exceptions): Most non-prepared food (but not restaurant meals).
  • Prescription drugs and medical devices: These are generally exempt, but some durable medical equipment might be taxable.
  • Farm equipment.
  • Newspapers and magazines.

Exempt Customers:

  • Government agencies: State and local government agencies, as well as agencies of the federal government, are exempt from paying sales tax by statute.

Certain non-profit organizations: Qualified non-profits may be exempt if the purchase is used for their exempt purpose and they have a sales tax exemption certificate.

Contact Yonda Tax Today

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